La Fed he turned off the lights Wall Street. The US central bank, as expected, has increased i rates by only 50 points, the first hit of the brakes after four maxi increases of 75 points, but the president Jerome Powell, freezing market expectations, he underlined that "much work remains to be done". That is, in 2023 there will be new increases (up to 5,1%) also because the war on inflation will not be won before 2024. An indigestible recipe (growth is held back, unemployment rises) after the heavy cure of the last few months . Today, at home ECB, same diagnosis and therapy: for now an increase of 50 points, other squeezes in sight for 2024.
Wall Street loses out. Banks down, Pfizer up
The US stock exchanges, surprised but not too much, have taken the downward path after Powell's words: Dow Jones -0,42% (lost 300 points in the final stages) S & P 500 -0,61%. The Nasdaq drops by 0,76%. The index future was flat this morning.
US central bank governors have target a Fed Funds rate at 5,25% in 2024, even exceeding economists' expectations.
Widespread declines in all sectors, with the exception of the Healthcare index which closed up, thanks to +2,7% Pfizer driven by formidable vaccine profits. Banks are down Morgan Stanley -2,6%.
Tesla has hit a two-year low. From the mandatory communications, it emerged that Elon Musk has sold $3,58 billion worth of shares in the past few days.
European futures down, dollar stagnant
Even the European Stock Exchanges, Business Square inclusive, they should open lower. The future of the EuroStoxx50 index reports -0,3%.
Spotlight on the decisions of the ECB on rates and the update of forecasts for next year, pending the press conference of the president Lagarde at 14.30.
Reuter anticipates that, in addition to the half point hike in rates, the central bank will anticipate that interest on bank deposits at Frankfurt it will rise to 2% for now, to then move on to 2,5% in March and 2,75% in June.
Inflation will not fall to the level of 2%, the bank's declared objective, before 2025. The economy, therefore, will have to resign itself to higher rates for the next few years.
Cross euro dollar at 1,065, unchanged. Government bonds have not moved much: 3,48-year Treasury yield unchanged at 1,94%. German Bund at 3,85%. XNUMX-year BTP at XNUMX%.
Promoted with reserve the Italian maneuver
Promoted with reserve the Italian maneuver in Brussels. The European Commission believes that Italy's measures for 2023 are "overall in line with the indications and guidelines" contained in the July recommendation, but rejects the increase in the cash limit, the 60 euro limit for payments with the Pos and some measures on pensions.
Also Asia in red. Unemployment alarm in China
Asia also reacted downwards to the Fed's statements.Hang Seng of Hong Kong loses 1%. CSI300 of the Shanghai and Shenzen lists -0,2%.
Il Nikkei of Tokyo loses 0,4%. Kospi of Seoul -1,1%. BSE sensex -0,5%.
In China, economic activity suffered a further deterioration in November: industrial production increased by +2,2% on an annual basis (on expectations at +3,6%) and retail sales fell by -5,9%.
Above all, the increase in the unemployment up to 5,7% (it was 5,5% in October): the unemployed between the ages of 25-59 rose to 5% (from 4,7%), while among the youngest (16-24 years) , the percentage is 17,1%.
Oil drops, today EU council on gas
Petroleum: Brent and WTI -1%. A major portion of the Keystone pipeline is back in operation. The infrastructure management company said it was working to restore flow across the network to normal. Meanwhile, there was a sharp rise in US crude oil inventories for the week. The stock increased by 10,231 million barrels to a total of 424,129 million, the largest weekly increase since March 2021.
European natural gas yesterday -4,3% to 131 euros per mWh. Gas will be one of the topics at the center of the European Council scheduled for today in Brussels. The first in which he participates, since she became prime minister Giorgia Meloni. The roof deal still seems a long way off.
Enel negotiates sale of Romania, new contracts for Saipem
Enel entered into an exclusivity agreement with the Greek company Public Power Corporation for the sale of all the equity investments held by the Enel group in Romania. A note announces it. During the exclusivity period, until the end of January 2023, the parties will negotiate the terms of any transaction.
Saipem was awarded two new offshore contracts in Guyana and Egypt for a total value of approximately $1,2 billion. The first contract was awarded by ExxonMobil Guyana. The second, in Egypt, was awarded by Petrobel for the Zohr field.
Unicredit. Goldman Sachs has raised its target from 19,5 to 20,25 euros, strengthening the Buy.
Diasorin. The French Biomerieux, active in the same area, has raised its operating profit forecasts for 2022 to 600-630 million euros, in 2023 the company should reach over 660 million.
